Business Directories

Nakheel plans creditor sukuk issue

Dubai, April 11, 2012

Dubai property developer Nakheel plans to issue the second tranche of its Dh4.8 billion ($1.31 billion) Islamic bond (sukuk), to trade creditors by the end of April, the company's chairman said on Wednesday.

The first portion of the five-year sukuk, worth Dh3.8 billion, was issued in August. It carries a profit rate of 10 per cent.

'The second tranche, I think, will be launched by the end of this month. We are trying to get it out by the end of this month hopefully. It will be all the same terms,' Nakheel Chairman Ali Rashid Lootah told reporters.

He added that the sukuk would be listed on Nasdaq Dubai 'as soon as is practical.'

The sukuk is part of Nakheel's $16 billion debt restructuring deal which repays trade creditors 40 per cent in cash and 60 per cent via the bond.-Reuters